Tips For Buying or Building a House Near Power Lines

Are you considering buying or building a house near power lines?

Homes near power lines are much more affordable, making them particularly attractive to first-time homebuyers and investors.

In Australia, vast landscapes and expanding urban areas frequently intersect with extensive power infrastructure.

In this article, we’ll dive into the considerations of buying a home near power poles and powerlines and essential information you should know, including:

• Insurance and Financing
• Property value and resale
• Visual and noise issues
• Health concerns

What Does ‘Near Power Lines’ Mean?

Everyone’s definition of ‘near’ will be different. When purchasing property, we discuss properties close to overhead power lines.

There are no specific distances; however, within 100-200m or less of a power line is close, and the distance varies depending on local state regulations.

The closer the property is to high-voltage powerlines, the greater the challenge when securing financing and insurance. Additionally, there’s a heightened risk of health issues.

EMFs and Health

Despite some claims, no hard evidence suggests living within proximity negatively impacts your health.

However, while studies have not conclusively proven a link between electromagnetic fields (EMFs) and health issues, it hasn’t stopped people from worrying about EMF exposure, which is a type of radiation causing headaches and possible irreparable cognitive damage. There is also talk that long-term exposure to EMFs causes cancer.

While considering the possible health implications of living near high-voltage power lines, the noise is another valid concern. Did you know powerlines emit a cracking or humming noise, especially in wet weather? While the noise is not loud, it’s not what everyone wants to hear regularly.

If you’re considering building a house, a possible solution to noise is roof, wall, floor insulation and double—or triple-glazed windows.

Plus, if the powerlines are within 200 metres, you’ll see them, and no matter how positive you are, power poles and lines are unsightly and create an unappealing aesthetic.

If you haven’t been put off yet, here’s what to consider when purchasing a home near a power line.

Does The Type of Power Line Matter?

Once you know the type of powerline near your property, you can work out the risks.  For example:

• Is it a transmission line or a distribution line?
• Is it a large steel structure or a thinner wooden pole?
• Is it an insulated or bare power line?

The type and material of these powerline structures affect not only the visual appeal of the property but also its perceived valuation. Many videos, including this one, discuss the impact of living near powerlines.

Will The Bank Provide You With A Mortgage?

The jury is out, so to speak, on how many banks will provide home loans to properties near powerlines. However, a property directly under power lines will struggle to find a bank to provide the financing. This is when a second-tier lender is a better option.

However, all lenders have specific lending requirements, such as a higher deposit. You may also need to agree to an in-person meeting with the lender.

Will Your Property Be Insurable?

Some insurance companies may consider homes near power lines at a higher risk, potentially resulting in increased premiums or specific exclusions.

The closer your property is to high-voltage lines, the higher the insurance premiums. For example, QBE Insurance does not provide policies to homes within 50 metres of high-voltage powerlines.

Future Plans, e.g. Zoning

Are you planning a swimming pool in your backyard? For obvious safety reasons, it can never be built under a power line.

Are you planning to subdivide? Power lines and associated easements may impact your plans and reduce the usable land area.

Zoning regulations and local building codes will dictate what is permissible near power lines, and it’s essential to consult these guidelines to ensure compliance and safety.

Finally, does your local council plan to convert to underground power? If so, this could alleviate any concerns related to overhead power lines. However, in the meantime, check for any easements related to power lines on the property.

Easements grant utility companies the right to access and maintain power lines, which could restrict land use.

Powerlines And Property value

Homes near powerlines are cheaper to purchase than similar homes in the same neighbourhood.  While all homes appreciate over time, powerlines will ensure property values remain modest due to factors mentioned earlier, including noise, poor aesthetics and perceived health implications.

Maintenance disruptions are also likely to put off future prospective buyers. Legal restrictions and easements on properties near powerlines will limit land use and development, impacting property desirability and value. Consequently, properties near power lines typically sustain lower market values and slower appreciation rates.

Summing Up

Do your research before buying or building a home near a power line. Always consult your local council, real estate professionals, lenders, insurers and your lawyer before signing a purchase contract.

Even though properties near power lines often face challenges in valuation, marketability, and obtaining financing, with careful planning and consultation with experts, it may make sense to proceed with the purchase.